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4 months ago
BRIEF-Reliance Communications gets members' nod for demerger of wireless business into Aircel
April 24, 2017 / 8:19 AM / 4 months ago

BRIEF-Reliance Communications gets members' nod for demerger of wireless business into Aircel

April 24 (Reuters) - Reliance Communications Ltd

* Says Reliance Communications receives its shareholders' approval with 99.99 pct majority for the demerger of wireless business into Aircel Limited

* Transaction will reduce rcom debt and deferred spectrum liability by INR 200 billion

* Says Rcom and promoters of Aircel to hold 50% each in ‘Mergedco’ with equal representation on board and committees

* Says combined entity to enjoy enhanced business continuity through extended validity of spectrum till 2033-2036

* NPV of capex and opex synergies estimated at INR 200 billion

* Shareholders of Aircel Limited approved the scheme at meeting held on April 22nd, 2017, convened under the order of the NCLT

* Merged entity will have spectrum holding aggregating 448 mhz across the 850, 900, 1800 and 2100 mhz bands

* Aircel’s debt will reduce by INR 40 billion upon completion of the transaction Source text:bit.ly/2oBxIwW Further company coverage:

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